Prudential Real Estate Investors is Ashford Hospitality Trust's (NYSE:AHT) partner in the 28-hotel Highland Hospitality portfolio, with a 28.6% interest. Ashford's buyout for $250.1M is expected to close in Q1 and will be funded with cash on hand.

The purchase price represents a trailing 12-month cap rate of 6.9%, and a trailing 12.5x EBITDA multiple. On a forward basis, it represents a cap rate of 7.4% and an 11.6x multiple.

The distribution ratio will be one share of Ashford Inc. (NYSEMKT:AINC) for every 87 shares of Ashford Hospitality Trust (NYSE:AHT) held by stockholders on November 11.

Following the spin, about 70% of the common stock of AINC - an asset management company with long-term deals in place with AHT and Ashford Prime (NYSE:AHP) - will be held publicly, and the rest by Ashford Trust.

The hotel union - not a fan of the coming spinoff of Ashford Hospitality Trust's (AHT-0.3%) asset management business - has found a friend in ISS in its request for a special meeting to vote on the deal.

Needless to say, Ashford doesn't agree and notes any delay in the spinoff - announced on February 27 and set to take place on November 12 - could result in a big decline in the stock price.

Ashford also reminds it has held numerous talks with shareholders since the spinoff announcement and has adopted governance changes as a result of those consultations.

Among the changes at Ashford Hospitality Trust (NYSE:AHT) as it prepares for the spinoff of its asset management business (Ashford, Inc.), are cutting the threshold to call a special meeting of shareholders to 35% from 50%.

Noting Ashford, Inc. would be a small cap company upon the spin and thus a target for activists/raiders, governance changes are also approved for that business, including providing shareholders with the right to call a special meeting.

Believing the public markets continue to value the company's portfolio at a discount to private market value, Ashford Hospitality Prime (NYSE:AHP) intends to create value by selling lower RevPAR hotels and using the proceeds to buy back stock. AHP is lower by about 20% since it was spun out of Ashford Hospitality Trust (NYSE:AHT) nearly one year ago to the day.

To that end, the company intends to look into the sale of the Courtyard Downtown Philadelphia and other hotels in its portfolio, and the board has authorized a $100M repurchase program.

Management also reaffirms its plan to achieve a 5x or lower net debt-to-EBITDA ratio by the end of 2015.

Both equity and mortgage REITs saw plenty of buying as nearly all of the rest of the market was lit up bright red, and Treasury ETFs signaled a sharp drop in yields when government bonds reopen for trade tomorrow (closed this session for Columbus Day).

Ashford Hospitality Trust, Inc., is a real estate investment trust. It is engaged in investing in the hospitality industry across all segments and in all methods including real estate, equity and debt.